Smaller Real Estate Tax Bill Jump in ’17 as Property Values Cool

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Photo: Belmont’s Assessors’ (from left) Charles R. Laverty, III, Robert P. Reardon, Martin B. Millane, Jr.

Real estate taxes on the average-valued home in Belmont will increase by the least amount in the past four years after the Belmont Board of Selectmen approved at its Monday, Dec. 19 meeting the recommendation of the town’s Board of Assessors’ to up the town’s property tax rate 14 cents in 2017.

The annual tax bill for the average assessed valued property – currently $941,700 – would increase by $311 to $11,960, less than half of last year’s hike of $717 under the new tax rate of $12.70 per $1,000 of assessed value. The current rate is $12.56 per $1,000.

Under the new rate, the annual tax for a property assessed at $750,000 will be $9,525, or $2,381.25 per quarterly tax bill.

The increase in the tax rate “is a result of a slight increase in real property values with an increase in the tax levy capacity,” wrote Assessors’ Chair Robert P. Reardon in the board’s yearly report to the Selectmen.

Reardon told the Belmontonian the town data showed a significant cooling in real estate values in Belmont this year. After increases of $55,300 ($782,600 to $847,900) from 2014 to 2015 and $79,500 between 2016-15 ($847,900 to $927,400), assessed values increased just $14,300 in 2017 compared to 2016.

After years of five percent increases in average assessed values, “[y]ou expect it to pull back, and it did this year,” said Reardon, who predicts home values will continue to level off in 2017 with two interest rate hikes anticipated by the Federal Reserve.

Under the new rate, Belmont will collect $85.6 million from residential, commercial, open land and personal properties. Last fiscal year, the town raised $82.9 million in real estate taxes.

Reardon noted a healthy increase in new property growth totaling $788,000 from the construction of the Belmont Uplands and the sale of prime properties on Woodland Road provided a “nice” bump into the town’s coffers.

As with past years, the assessors’ recommended, and the selectmen agreed to a single tax classification for all properties and no real estate exemptions.

Reardon said Belmont does not have anywhere near the amount of commercial and industrial space – at a minimum 20 percent – to creating separate tax rates for residential and commercial properties. Belmont’s commercial base is 4.24 percent of the total real estate.

“People always assumes there’s money if you go with the split rate and that’s not true,” Reardon told the Belmontonian.

Spike in Average Property Tax Bill Anticipated As Override Comes Dues

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Photo: Board of Assessors’ (from left) Robert Reardon, Martin Millane, Jr. and Charles Laverty III

Belmont property owners can expect the equivalent of a lump of coal in their next two quarterly tax bill arriving in February 2016 as residents prepare to pay for the Prop 2 1/2 override voters passed in April.

The average household can expect to see its next two tax bills jump by $350, according to Robert Reardon, chair of the Belmont Board of Assessors which presented its recommendations for next fiscal year’s property tax rate to the Belmont Board of Selectmen at its Monday, Dec. 14 meeting.

While the assessors are recommending a significant drop in the tax rate – $12.56 per $1,000 in fiscal 2016, down from $12.90 in fiscal ’15 – any possible dip in taxes was offset by a dramatic increase of 11 percent in assessed values of all property town-wide, from $5.928 billion in 2015 to 2016’s $6.598 billion.

Approximately $4.5 million of the $6.9 million spike in assessed values comes from the Proposition 2 1/2 override that passed comfortably by voters at this year’s Town Election to stabilize school finances.

In comparison, assessed values rose in fiscal year 2015 by $2.3 million and by $1.9 million in fiscal ’14.

The value of an “average,” or median priced Belmont house has rocketed to $928,003 from $847,900 in fiscal 2015

For the “average” Belmont home, taxes next fiscal year will be $11,655, an increase of $717.45 from the $10,938. 

In comparison, property taxes increased $373 between fiscal 2014 and fiscal 2015.

Reardon said after the new fiscal year begins on July 1, 2016, the increase will be spread over four quarters, and the average customer’s bill will be about $180 higher.

Suspecting many Belmont residents would “notice” the large change in their tax bill, Reardon said the Assessors’ Office would include in the next two bills a two-page “explanation to the taxpayers on why the levy was increased and the approximate increase can is the result of the change.”

“Just so they have a better understanding and cut down the number of questions they may have,“ said Reardon, who was accompanied to the meeting by his colleagues, Martin Millane, Jr. and Charles Laverty III

The Massachusetts Department of Revenue has a handy primer on calculating the tax levy.

As with past years, the assessors recommended, and the selectmen agreed to a single tax classification for all properties and no real estate exemptions.

Reardon said Belmont does not have anywhere near the amount of commercial and industrial space – at a minimum 20 percent – to creating separate tax rates for residential and commercial properties.

“We are not raising more money by having a commercial rate, we are only shifting it” onto businesses while the savings for residential ratepayers would be “negotiable,” said Reardon.

“One of the dilemmas is because our residential property values are so high, I think it artificially drives up a lot of our commercial properties,” said Baghdady.

“Commercial rents to justify the value is tough to absorb by a business,” said Baghdady.

Belmont Property Tax Rate Falls but the Average Bill Continues to Rise

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The good news: The Belmont Board of Selectmen has cut the property tax rate in fiscal 2015 by nearly five percent.

The bad news: Your residential tax bill will in all likelihood be higher in the coming fiscal year.

That’s the analysis from the Board of Assessors which presented its recommendations to the Selectmen on Monday, Dec. 1.

The board’s recommendation, which the Selectmen approved unanimously, was that the fiscal 2015 tax rate to be set at $12.90 per $1,000 of the assessed value of the property. That is a 60 cent cut from last fiscal year’s rate of $13.50.

While normally a cut in a rate would be good news, it comes as the assessed value of Belmont properties increased by just under $500 million to $5.9 billion. That increase can be seen in the value of an “average,” or median, Belmont house which exploded to $847,900 from $782,600 last year.

For the “average” Belmont home, taxes next fiscal year will be $10,938, up $373 from last year’s average of $10,565.

“The decrease in the rate is a result of the increase in real property values with an increase in the tax levy capacity,” said Assessors Chairman Robert Reardon, who was accompanied to the meeting by his colleagues, Martin Millane, Jr. and Charles Laverty III.

For more information on just what is and how the tax levy is calculated, the Massachusetts Department of Revenue has a handy primer explaining the concept.

With the vote, Belmont will see an increase in property taxes in the coming fiscal year of $2.3 million (compared to $1.9 million last year) from a total amount collected of $76.6 million. That amount is the sum of the annual 2.5 percent increase allowed under state law and $654,000 in “new growth” which includes properties that have increased in assessed valuation since the prior year because of development or other changes and any new subdivisions and condo conversions.

As with past years, the assessors recommended and the selectmen agreed to a single tax classification for all properties and no real estate exemptions.

Reardon said Belmont does not have anywhere near the amount of commercial and industrial space needed to support separating the classes with their own tax rate.

“We are not raising more money by having a commercial rate, we are only shifting it” onto businesses while the savings for residential rate payers would be “negotiable,” said Reardon.

Under a senario where the commercial rate would be maximized by a factor of 1.5, residential tax payers would see their rate drop by 39 cents to $12.51/$1,000 of assessed value for an “average” savings of $330 per year while commercial rates would increase to $19.35/$1,000 to see an average increase of nearly $5,500 from last year.

“Every board strives to increase our commercial base … we really want to incentive them and you don’t do that by increasing the tax rate,” said Selectmen Chair Andy Rojas.